ECB Weber: Germany Needs New Insolvency Requirements For Banks

Germany needs new insolvency requirements to win time and guard itself against any failure of systemically relevant banks, Deutsche Bundesbank President Axel Weber said Thursday, reported on a Dow Jones story. One of the things currently discussed would be more stringent capital requirements for systemically relevant banks, Weber said, with a view to pending international agreements. Commenting on money market developments, he said he doesn't share the view that the market place for banks' liquidity provisions will return to business as usual after the global financial crisis. The days of low risk premia, in particular for longer-term liquidity deals without collateral, are over Weber said. He added that the European Central Bank is well aware of the fact that it is still playing a central role in money markets, as demonstrated by the persistance of multi-billion overnight deposits in the ECB's pockets. Read more.